Latin Resources Ltd (ASX:LRS) (FRA:XL5) has received firm commitments to raise $5 million via a placement of more than 166 million shares at an issue price of 0.3 cents per share.
Placement shares will be issued to sophisticated and professional investors of Euroz Hartleys Ltd who acted as sole lead manager of the placement.
The funds raised will enable the company to accelerate exploration and drilling programs for its Noombenberry Kaolin-Halloysite Project in WA and Lachlan Fold Belt gold projects in NSW.
“Extensive drilling planned”
Latin executive director Chris Gale said: “The interest shown by Euroz Hartleys’ clients in the capital raising is a testament to the quality of Latin’s projects that are now drill-ready and positioned to move into the next phase of development.
“The company has an extensive schedule of drilling across multiple targets planned to commence in December and continue throughout 2021.
“This will start with the immediate drilling of our very exciting Noombenberry Halloysite-Kaolin Project in WA and we’ll then embark upon our maiden gold drilling in the world-class gold district of the Lachlan Fold Belt, NSW, in the first quarter of 2021.”
Funding exploration
Funds from the placement will be applied towards:
- Maiden aircore drilling of the Noombenberry Halloysite Kaolin Project near Merredin in WA;
- Exploration at the Yarara Gold Project in the Lachlan Fold Belt, NSW, including first phase RC drilling of around 3,000 metres in total, across multiple high-priority targets;
- Reconnaissance mapping and sampling at the recently acquired Manildra and Burdett Projects near the world-class Cadia-Ridgeway mine in the central part of the Lachlan Fold Belt;
- First phase of RC drilling for around 1,000 metres at the Manildra and Burdett projects; and
- General working capital purposes.
Placement details
The placement is made without a prospectus or other disclosure document as an exempt issue to sophisticated and professional investors only.
Of the total 166,667,000 placement shares, 67,249,282 will be issued under the company’s Listing Rule 7.1 Placement Capacity, and 99,417,718 will be issued under the company’s existing ASX Listing Rule 7.1A Placement Capacity.
In addition, the directors of Latin Resources intend on participating in the placement to a maximum of $20,000, subject to shareholder approval.